Needs Analysis allows users to utilize available fields to determine the appropriate levels of cover for the client, and provide insurance advice through AdviceOS.
1. Accessing the Needs Analysis module
The module can be accessed via Home - Modelling - Needs Analysis.
2. Analysis
2.1 Client Details
On this screen we can see the client's basic information, such as Retirement Age, Income & Expenses, Liabilities, etc.
2.1.1. Update from Fact Find
If these details have been correctly entered in Fact Find, we can click on Update from Fact Find button to bring the details through from Fact Find to this section.
Note: The Liabilities and Non-super Investments buttons are interactive.
2.1.2. Edit Liabilities
Click into Liabilities button to add new liabilities, edit existing liabilities, and specify whether we want the liabilities to be covered and in what circumstances.
For example, in the following screenshot, we choose to have client's home loan covered if the client passes away.
This liability will then flow through to Life cover tab in Needs Analysis.
2.1.3. Edit Non-super Investments
Click into Non-super Investments button to add new assets/investments, edit existing ones, and specify whether we want to utilize these investments to reduce the insurance level they need.
For example, we can select the client we want to reduce a certain cover for by selling down a particular asset, in this case Cash at bank to be used to reduce the level of cover needed for Trauma.
This asset will then flow through to the Trauma cover tab in Needs Analysis.
2.1.4. Manually updating Income & Expenses
Users can manually update the Income and Expenses amount in this tab, however we recommend updating them in Fact Find first and then click on Update from Fact Find to bring the updated figures across. Otherwise when an SOA is generated, the income and expenses figures shown in Fact Find will not be the same as what is manually updated in Needs Analysis.
2.2. Life
On this page we have our Expenses to Replace and a few options to choose from.
2.2.1. Expenses to Replace Calculator
To use the Calculator, we need to click on Expenses to Replace button to access the Expense Scenario Manager.
In the scenario manager, we will be able to perform the below functions (numbers matching above screenshot)
1) Create multiple expense scenarios
2) Specify annual expenses until a particular age, add an indexation rate to the expense
3) Add multiple periods to illustrate different expenses
4) Specify a rate of return
5) Select which scenario we want to use for the Expense calculator. This field will only become alive if 'Use Calculator' has been selected from the expenses drop down list.
2.2.2. Calculating Education Cost
When there are dependents added in Fact Find for the client, the Education cost button will become alive, and users can click into the button to access Education Expenses Calculator.
For example, costs can be specified for primary, secondary and tertiary education and we can choose which period to cover for which dependent.
2.2.3. Provisions to reduce insurance gap
Users can add certain provisions to reduce the insurance gap, if they want to use existing super, existing non-super investments, other provisions or by retaining existing life cover.
The final insurance gap will be the difference of Required Capital and all available provisions.
Users can choose other options in the Expenses drop down list such as Other Amount, Expenses for x years, Until Retirement, etc.
2.3. TPD
Similar to Life cover, we can select from the below options for expenses to cover for TPD.
2.3.1. Liabilitie to be covered
We might notice in the above screenshot, Liabilities to be covered in TPD is zero, and the field is un-editable.
If we wish to make changes here, we can navigate back to Client Details tab and edit it by clicking into the Liabilities button to associate it with any cover type.
2.3.2. Medical Cost
There is a medical cost field which allows users to put in any expected medical cost that might be associated with TPD.
2.4. Trauma
Similar to Life and TPD, users will be able to select from a list of options for expense to cover, and add provisions to reduce the insurance gap.
For example, we can select to cover Expenses for 3 years.
2.5. Income Protection
In this section, users will be able to calculate the IP cover needed based on client's salary and specify whether to retain any existing IP cover. Users can also choose to use the IP cover to offset the insurance needs of TPD or Trauma.
2.5.1. Annual salary amount used for IP
Annual income covered amount is calculated based on the Income covered percentage and Include Super percentage as well as the Income/Salary amount entered for the client.
To change the Income/Salary, we can navigate back to Client Details page to update the amount there.
The change made on Client Details will not reflect back in Fact Find, therefore to ensure consistency it is recommended to make this change in Fact Find then use the Update from Fact Find button to bring the update through to Needs Analysis section.
2.5.2. Income Offset Manager
Within this section, users can select to use the estimated current capital value of the income stream received from the Income Protection cover amount over the benefit period (less any waiting period) to offset the insurance needs for TPD or Trauma cover.
Note there are two highlighted tick boxes, which are Include tax in capitalized offset and Offset ongoing expenses only.
Include tax in capitalised offset - the income stream is reduced by the prevailing tax rates before determining the current capital offset amount.
Offset ongoing expenses only - capital expenses that are required immediately such as Loans, Medical costs, Funeral costs are not offset by the capital value.
For example, in the above screenshot we have selected to use the capital value to offset TPD cover, and the Income Offset amount is $377,990.
If we navigate back to TPD cover tab, we will notice that this amount appears as Non-super financial assets and is used to reduce to insurance gap.
3. Summary
Once we fill in everything we need to in above sections, we can then move on to the Summary of Analysis page.
We can see amounts of cover required for each of the cover types, we can untick anything that is not applicable.
Once we are happy with this, we can move on to Product Recommendation section.
4. Recommendations
4.1. Product Recommendations
In the Recommendation section, users can view the existing policies saved in the Fact Find, add existing/inforce policies, and also manually add the policies we want to recommend or compare.
4.1.1. Add recommended policies
There are two ways a user can add a recommended policy - clone an existing policy or via the Add button.
Clone an existing policy:
Highlight an existing policy which we want to clone, then click on Clone Product.
This will create a recommendation that is identical to the existing policy.
Add a new recommendation:
Add different types of cover from the Add button dropdown list.
With either of the two approaches, users can click on Add button below to add other cover types to the same recommendation.
The recommended policy will automatically populate with the cover amount we have captured in Summary Analysis tab.
Click on the expand button and More Information button to enter more details, including Supplier selection.
4.1.2. Compare products in Insurance Comparators (Omnium)
Once the recommended policy is selected, clicking on Compare Product button will take us to the Insurance Comparator module (Omnium). They are separate modules which allow our users to obtain tailored insurance quotes from a variety of providers and compare policies side by side.
Users can navigate to the Insurance Comparator module directly from the Home Screen, users should always navigate from the Compare Product button in Needs Analysis if they want their insurance needs analysis to populate into an SOA.
For further instructions on how to use the Insurance Comparator, please refer to the user guides for Insurance Comparator - Omnium.
4.1.3. Return to Needs Analysis from Insurance Comparator
Once we have completed the insurance comparison in Omnium, we can return to Needs Analysis by clicking on Return to Needs Analysis button on the Product Recommendation tab.
4.1.4. Generate Needs Analysis report
Users can generate a Needs Analysis report from this page by clicking on the Create Report button.
4.2. Recommendations Summary
Once we complete the Compare Product section via Insurance Comparator, or we've manually entered in all the details in Details section for the recommended policies, we can navigate to Recommendations Summary tab which gives us an overview of what we have done in previous sections.